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Insight into the N470.2 billion disclosed Private Equity deals in 2018

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The year 2018 was indeed an eventful year for Limited partners and Private Equity (PE) players, as the sell offs recorded in both the equities and bond markets on the backdrop of a tightened global financing conditions, intensified trade tensions, political risk and significant financial market stress, witnessed in emerging markets and developing economies, had little or no effect on PE deals.

A total disclosed amount of N470.2 billion worth of deals were recorded across different sectors of the economy in the year 2018, according to data compiled by BusinessDay, with the amount and stakes of some others, not let out to the public for some reasons dimmed fit by the parties involved.

The consumer goods and the Fintech sectors recorded the highest number of deals with 7 deals each. This was followed by the healthcare and the banking sector where a total number of three deals were recorded.

Similarly, more deals were attracted into the country during the second quarter of the year, while less were recorded in the fourth quarter. Highlights on some of those deals whose amounts were “disclosed” include.

AFFELKA & 7UP   (N21.45 billion)

On 11 January 2018, Affelka S.A, the majority shareholder of Seven–Up Bottling Company PLC, increased its stake from 73.2 percent to 100 percent in the soft drink bottling company by acquiring all the outstanding and issued shares of SBC that were not currently owned by Affelka.

The takeover deal which was worth about N21.45 billion saw the delisting of SBC from the stock exchange after a rough year that made the consumer goods firm witness slow demand on the back of a recession that worsened currency crisis and stifled importation of raw materials.

ATLAS MARA & UNION BANK    (N8.25 billion)

Atlas Mara Limited, a sub-Saharan financial services group acquired an additional 280, 956, 166 shares of a Nigerian tier II lender, Union Bank, in a deal worth N6.6 billion.

The firm also increased its again stake by injecting another N1.65 billion in UBH, summing the combined deal to N8.25 billion

The said deal saw the Bod Diamond sub-Saharan private equity firm raise its combined direct and indirect shareholding in UBN from 48 to 49.0 percent, just 1 percent shy away from the 50 percent takeover possibility.

Amaya capital Partners & Rensources (N1.2 billion)

Amaya capital, a Mauritius-based private equity firm, invested about $3.5 million in Rensourse, a Nigerian based renewable energy startup firm to enable the energy providing firm expand its Nigerian operations into kano and Abuja.

Zinox Group & Konga (N12.6 billion)

Zinox group, an integrated ICT solutions and equipment manufacturers, acquired a 100 percent stake in konga, an ecommerce powerhouse in a deal worth $100 million.

The deal conferred rights on Zinox to assume total ownership of the e-commerce group including its online mall, konga.com; konga pay, a CBN licensed mobile money platform with over 100,000 subscribers as well as kOS-Express, a digital- driven logistics company with advanced delivery capabilities for Konga and other structured companies nationwide.

African Infrastructure Investment Managers & Starsight Power Utility (N10.8 billion)

African Infrastructure Investment Managers (AIIM) in partnership with Helios Investment acquired the stake of Starsight Power Utility Ltd in a $30 million (N10.8 billion) investment deal.

The deal was done through AIIM African Infrastructure Investment Fund 3 (AIIF3), primarily to invest across the power, transportation and energy infrastructure sub-sectors in Sub-Saharan Africa.

Alta Semper Capital LLp & Heath Plus Limited (N6.4 billion)

Alta Semper Capital LLp committed some $18 million to acquire stakes in one of Nigeria’s leading retail pharmacy and beauty outlet, HealthPlus that will allow the London-based private equity firm to expand its retail foot print and enhance its competitive position.

DE United Foods Industries Limited & May&Baker (N775 million)

May & Baker Nigeria PLC, a leading player in the Fast Moving Consumer Goods (FMCG) industry and health care space, on Thursday 26th April 2018, sold its food production line, worth N775 million to DE United Foods Industries Limited (DUFIL), owners of Indomie noodles.

The deal was a 100 percent acquisition of May and Baker’s food division under the brand name, Mimee Noodles and less than 10 percent of its total balance sheet size, according to Sandra Aduba, May and Baker’s head of Communication Department.

TLcom Capital & Terragon (N1.8 billion)

An African venture firm TLcom Capital last year made a $5 million (N1.8 billion) investment into Terragon Group, Nigerian-based Company that is into developing of software analytics service for customer acquisition.

TLcom’s commitment is the second from its $40 million TIDE Africa Fund for early and growth-stage digital companies.

TPG Growth & Cellulant (N14.5 billion)

In what was described as its first and largest ever deal in Africa, The Rise Fund (TPG), a global impact investing fund managed by growth equity platform TPG Growth alongside Endeavor catalyst and Satya capital made a $47.5 million (N14.5 billion) series C investment deal to acquire a stake in Cellulant, a leading digital payments provider that reaches 40 million people across 11 African countries.

Standard Bank Group & Stanbic IBTC (N52.61)

South African based financial company, Standard Bank Group in June last year acquired an additional 11.35 percent stake in Stanbic IBTC Holdings Plc in a deal worth about N52.61 billion.

The said deal increased the equity stake of standard bank in the Nigerian tier two lenders from 53.09 percent to 64.44 percent through an acquisition of additional 1.142 billion shares in an off-market transaction.

Standard bank Group did the deal through its wholly owned subsidiary, Stanbic Africa Holdings Limited.

Daimler Group, Korelya Capital, Transfer wise & Taxify (N63 billion)

A consortium of investors led by a German automaker Daimler group, along with European venture fund Korelya Capital and TransferWise made a $175 million worth of investment in Taxify to enable the online transport company develop its technology and further penetrate its existing regional market.

Lead Path & Piggybank (N397 million)

Nigeria’s Piggybank last year secured a $1.1M seed funding from a consortium of investors led by LeadPath Nigeria along with Village Capital and Ventures Platform making contributions. LeadPath Nigeria said it made a commitment of $1m while Village Capital and Ventures Platform contributing $50,000 each.

Duet Capital & Ajeast (N15.3 billion)

Duet Private Equity Limited (DPEL), in August invested in the acquisition of a majority stake in AJEAST Nigeria Limited, sub-Saharan Africa subsidiary of AJE Group, in a deal worth $550 million.

The Proceeds of the investment is said to be used in accelerating select international territories, facilitate the launch of new products and brands, and increase AJEAST’s production capacity and volume.

Eaton Acquisition Ltd & NEM Insurance (N52 million)

Eaton Acquisitions Limited, increased its stake in NEM Insurance Plc to 9 percent, after it announced the acquisition of an additional 4 percent of the insurer, in a deal worth N52 million.

The acquisition makes it the single largest shareholders and puts it within a distance of its 10 percent acquisition target it hopes to achieve.

TPG Growth & Mines (N3.98 billion)

Nigerian fintech startup, Mines, closed a Series A round deal of $13 million to continue growth in Africa, expand to South America and South-East Asia. The Series A funding round was led by The Rise Fund, a global fund managed by TPG Growth.

4Dx Ventures & Tizeti (N918 million)

A consortium of investors led by 4DX Ventures with participation from existing investors Y Combinator Continuity, Lynett Capital, Social Capital, Western Technology Investment, Friále and Golden Palm Investments, closed a Series A round of deal, that is worth $3 million in a Nigerian ISP start-up Tizeti and its consumer facing brand, wifi.com.ng.

This follows on from the company’s Seed investment of $2.1M in 2017.

Global Innovation Fund & PAGA (N3.1 billion)

Nigerian mobile payment company Paga last year, closed a $10 million financing deal led by UK-based investment fund Global Innovation Fund (GIF). The financing took the total amount the mobile payment company has raised since inception in 2009 to $35 million.

Stripe, Visa, Tencent & Paystack (N2.4 billion)

Paystack, a Nigeria-based startup that specializes in providing payments tools to businesses in Africa, sealed an $8 million Series A funding, led by Stripe, and includes Visa, Tencent and Y Combinator, as well as angel investors Tom Stafford. This brings Paystack’s total investment to date to more than $10 million.

Kelloggs & Tolaran (N153 billion)

Kellogg Company, invested another $420 million to strengthen and expand its joint venture interests with its West African partner, Tolaram Africa Foods.

Kellogg’s tie-in with Tolaram Foods began in September 2015 through a deal that also saw the company acquire a 50 percent stake in Multipro, a leading sales and distribution company in Nigeria and Ghana.

Naspers & Frontier Car Group (N32.5 billion)

Internet giant Naspers, invested about $89 million in a Series C stage funding round for Frontier Car Group, an online and offline retailer of used cars.

The investment was made through its early stage investment arm OLX Ventures with the proceeds to be used in expanding into new markets including Nigeria, Mexico, Chile, Turkey, Pakistan, and Indonesia and in turn, enhance cash services for its users.

Allianz & Africa Reinsurance (N29.6 billion)

Allianz Group entered an agreement sometime in June last year to acquire an 8 percent stake in Africa’s leading reinsurer Africa Reinsurance in a deal worth $81 million.

Sigma Bidco & Unilever (N2.24 billion)

On 1st July 2018, Unilever Nigeria sold its Spreads business (Blueband margarine) and all the assets attached to the business to Sigma Bidco B.V, an entity incorporated by KKR & Co LP, in a deal valued about N2.24 billion.  The entity was then incorporated in Nigeria as Sigma Silver Foods (Upfield Foods) Nigeria Limited.

Actis, Westmont& Four Point Sheraton (N5.83 billion)

Actis, a private equity house and Westmont Hospitality Group, a Canadian investment firm, acquired the 231-room hotel of Four point Sheraton, at $16 million, excluding debt.

 

MICHEAL ANI

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